Group faultlines which depend on the compositional dynamics of multiple attributes can potentially lead to group differentiation . An analysis of the emergence of faultlines is based on the social-categorization theory and the similar-attraction paradigm . Although faultlines may be formed at any time in group history , the types and the intensity of group faultlines change as familiarity increases among all group members . Accordingly , the effects of faultlines on team functioning and performance will be different . Furthermore , group faultlines influence team performance through team cohesion , team communication and team conflict . Such factors as task interdependence , KMS in the team and external leaders can moderate the relationship between group faultlines and team performance . Analyzing a group on the basis of its diversity and its faultlines generates a variety of practical implications ,which may help to diagnose , understand and manage group faultlines to coordinate the subgroups .